States Put Heat on Bitcoin via @WSJ

By ROBIN SIDEL and ANDREW R. JOHNSON State regulators are warning virtual-currency exchanges and other companies that deal with bitcoin that they could be closed down if their activities run afoul of state money-transmission laws, according to people familiar with the matter. According to people familiar with the situation, banking regulators in California, New York and Virginia in recent weeks have issued letters telling the companies that they need to follow the state rules or prove that the rules don't apply to them. State regulators have issued warnings in recent weeks to a handful of bitcoin-related companies, alerting them that they may be running afoul of money-transmission laws. Andrew Johnson joins the News Hub. Photo: Getty Images. The warnings fall short of formal "cease and desist" orders, which would demand that the companies immediately stop engaging in their...